SOFTS-Arabica coffee extends rebound on falling stocks

LONDON, Sept 26 (Reuters) - Arabica coffee futures on ICE extended this week's rebound on Friday, boosted by declining exchange stocks, while cocoa prices slumped to two-month lows.

COFFEE

Arabica coffee KCc2 rose 1.4% to $3.5625 per lb by 1403 GMT and was on track for a weekly gain of 2.9%. The price had fallen by 12% the previous week.

The market has regained some ground after a recent decline sparked by an improving outlook for next year's crop in Brazil following rains.

"Prices have rebounded, spurred by expectations of tighter US ICE-certified supplies following the implementation of a 50% tariff by the U.S. on Brazilian imports," analyst BMI said in a note on Friday.

Exchange-certified stocks stood at 579,961 bags as of September 25, down 21,756 bags from a day earlier. A month earlier they stood at 729,934 bags.

The market is also awaiting a planned meeting next week between U.S. President Donald Trump and Brazilian President Luiz Inacio Lula da Silva to see if a 50% U.S. tariff on Brazilian coffee could be revised.

Robusta coffee LRCc2 rose 1.9% to $4,158 a metric ton.

COCOA

London cocoa LCCc2 lost 0.3% to 4,873 pounds a ton after hitting a two-month low of 4,851 pounds.

Dealers said concerns about weak demand continued to weigh on prices and third-quarter grind data for Europe, North America and Asia in early October would be closely watched. The European grind data is expected to be issued on October 16.

New York cocoa CCc2 was down 0.1% at $6,949 a ton after setting a two-month low of $6,880.

SUGAR

Raw sugar SBc1 rose 0.6% to 15.86 cents per lb and was on track for a weekly gain of 2.6%.

Sugar production in Brazil's key centre-south region in the first half of September is likely to have risen 15% year on year to 3.6 million tons, according to a survey of analysts published by S&P Global Commodity Insights on Thursday.

White sugar LSUc1 was down 0.6% at $460.10 a ton.